10 years of property tax rate cuts likely to end in Chandler
Courtesy of city of Chandler
A chart shows how much more the median-value Chandler land owner would pay if the City Council decides to leave its primary property tax rate flat for fiscal 2027, as opposed to raising it.
City of Chandler leaders have been able to reduce its primary property tax rate 10 consecutive years.
That run appears to be coming to an end.
While Council doesn’t formally vote until June on its primary property tax rate for fiscal 2027, which starts July 1 of this year, staff-presented options and Council consensus seem pointed toward leaving the rate flat at $0.2118 per $100 of assessed valuation.
And unlike several previous years, when city finance staff presented an either-or option of leaving the rate flat or reducing it by one cent, a reduction wasn’t even presented as an option to Council this year.
Budget Director Matt Dunbar explained to Council that also means the city will likely need to go through the state’s Truth in Taxation process, which involves advance newspaper publication notice and a special hearing — even if the city’s keeping the rate the same in the year ahead.
The consensus Council given to Dunbar was to keep it flat, rather than raise it by one cent. Each penny change in the rate is a difference of a projected $427,000 in city tax revenue, he explained.
“We are moving forward with keeping the tax rate flat in the budget,” Dunbar said. “But council has until (preliminary budget adoption on) June 11 and final levy adoption on June 25 to alter the adopted rates.”
Dunbar said the secondary rate for Chandler owners is only used to pay down debt, such as voter-approved bonds. And leaving the primary rate flat means the total dollar amount most residents pay will still increase, because properties are still appreciating.
“If we leave the primary tax rate flat, we will need to do a Truth in Taxation publication and hearing,” Dunbar said. “Our primary tax rate would need to go down to $0.2059 from $0.2118 — a reduction of $0.0059 — to not require a truth in taxation posting.”
Dunbar said leaving the rate flat will lead to an estimated increase of about $14 per year — going from $277 to $291 — in a combined city property tax bill for the median-value landowner whose property had a $440,000 full cash value in fiscal 2026.
Dunbar said property around the city went up by 3.77% this year in valuation.
He said a complex state-mandated formula means flat rates generate an increase because new construction in the city — however small that might be — adds value.
“A Truth in Taxation notice has to be published, as the total assessment net of new construction will increase,” Dunbar said.
Email Jason W. Brooks at jbrooks@iniusa.org. Please submit comments at yourvalley.net/letters or email them to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.
INDEPENDENT NEWSMEDIA
Jason W. Brooks News Editor | Chandler Independent
Jason W. Brooks joined Independent Newsmedia, Inc., USA, in July 2021 as an associate editor. After a year covering Buckeye, he has covered Chandler since the fall of 2022, in addition to assisting the Daily Independent throughout his time at INI.
Education: University of New Mexico, bachelor of arts in journalism and mass communication, print emphasis, English minor.
Random Fact: He and his siblings witnessed a Space Shuttle launch and landing in the same year in person, on opposite coasts.
Hobbies: Karaoke, bicycling and American Sign Language.
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